Rate and Term and Cash Out Refinancing for Commercial Property
A commercial refinance replaces your existing loan with new debt, either to improve the rate and term or to pull equity out of the property through a cash out. The timing matters more than ever. A large share of commercial mortgages written during the low rate years are hitting maturity, and many were underwritten at values and rates that no longer hold. Refinancing ahead of that maturity wall gives owners room to restructure on their own schedule instead of scrambling when the balloon comes due. A rate and term refinance lowers your monthly payment or extends your amortization without changing the loan balance much. A cash out refinance taps the equity you have built to fund improvements, acquire another property, or return capital to investors. The catch on many existing loans is the exit cost. CMBS and life company loans often carry defeasance or yield maintenance provisions that make an early payoff expensive, and we model those costs before recommending a refinance so the numbers actually work. CapitalAx places refinances through banks, credit unions, agency lenders, CMBS conduits, and life insurance companies across every major property type.
Deal Structure at a Glance
Who Is This For?
- Owners facing a loan maturity or balloon payment in the next 12 to 24 months
- Borrowers looking to lower a rate or extend amortization on an existing loan
- Investors who want to pull built up equity out through a cash out refinance
- Property owners exiting a bridge or construction loan into permanent debt
- Sponsors returning capital to partners without selling the asset
Common Use Cases
- Rate and term refinance to lower payments or extend the amortization schedule
- Cash out refinance to fund improvements, acquisitions, or investor distributions
- Replacing maturing debt ahead of a balloon payment
- Refinancing out of a bridge or construction loan into permanent financing
- Restructuring loan terms as property income grows
Borrower Scenarios
Examples of how this financing can be used.
An apartment owner with a CMBS loan maturing inside two years, starting a rate and term refinance early and modeling the defeasance cost on the existing debt against the new terms to confirm the move penciled before committing.
An industrial property owner with substantial equity built over years of ownership, using a cash out refinance to pull capital and fund the acquisition of a second warehouse without selling the first.
A sponsor exiting a bridge loan on a repositioned retail center that has reached stabilized occupancy, refinancing into long term fixed permanent debt with a life company lender.
A multifamily owner facing a balloon payment, starting the refinance well ahead of maturity to move into agency debt with a longer amortization, lowering the monthly payment and locking a fixed rate.
A mixed use investor with 4 residential and 4 retail units, all leased, pulling equity through a $1.5M cash out bridge from a family office lender, structured as 12 month interest only to fund a separate acquisition without selling the asset.
Why Work With CapitalAx
We help borrowers organize commercial refinance requests and compare lending sources that may fit the transaction.
Exit Cost Modeling Before You Refinance
A refinance only makes sense if the savings beat the cost of leaving your current loan. We calculate defeasance or yield maintenance penalties on your existing debt and weigh them against the new terms so you know the true breakeven before committing to anything.
Ahead of Maturity Planning
With so many loans reaching their balloon dates at once, waiting until maturity means competing for capital when lenders are stretched. We start the refinance process 12 to 24 months out, lining up terms while you still have leverage instead of when the clock forces your hand.
Every Permanent Lending Channel in One Search
Refinance pricing varies widely between banks, credit unions, agency lenders, CMBS conduits, and life companies. We run your refinance across all of them at once and present a side by side comparison of rate, term, leverage, and prepayment structure.
Tools & Calculators
Prepayment Penalty and Refinance Calculator
Compare estimated yield maintenance, defeasance, and step down costs against refinance savings and break even timing.
Commercial Property Value Calculator
Use a commercial property valuation calculator to estimate income based value from NOI and cap rate.
Commercial Real Estate Cap Rate Calculator
Calculate commercial real estate cap rate from NOI and property value to evaluate investment returns.
DSCR Calculator
Calculate debt service coverage ratio to see if your property qualifies for DSCR financing.
Related Loan Programs
Related Property Types
Looking for a different financing structure? Browse all loan programs.